UsePaid suspends X Money payments after volume spike

Solana-based DeFi protocol UsePaid, which uses X’s integrated digital banking service X Money to share token creator fees with users, has paused payments after experiencing “issues” following a spike in volume.

UsePaid noted, “Existing balances remain safe and fees will continue to accrue.”

It claimed that it was working on a solution, and that in the meantime there will be a temporary claims web portal for users to access.

UsePaid was unclear as to why it had to pause X Money payments and didn’t expand upon the “payment issues” it suffered.

UsePaid deposits failed to credit

Twenty four hours earlier, UsePaid revealed that Automated Clearing House ($ACH) deposits were failing to credit.

Because of this, it said it would have to cap payouts at $750 per person until $ACH deposits land on September 28.

Prior to this announcement, UsePaid had just experienced a volume spike of $1.54 million in 24 hours, a 26x increase from previous records.

Users ‘DDOSd’ with UsePaid funds

UsePaid’s X account was created in August and started posting in September. It allows users to redirect creator fees earned from token launches on Pump Fun to users on X via its X Money payments system.

In one instance, over $6,000 was sent to crypto influencer Tiffany Fong. Another X user described the almost $33,000 they received from UsePaid payments as being “DDOSd with money.”

X Money itself launched on July 27 for US-based X users subscribed to the app’s Premium and Premium+ subscriptions.

X’s payment service ran into interest issues earlier this month when the New York Department of Financial Services told the firm it can’t pay bank account-like interest on non-bank account deposits of New York residents.

It then offered short-term compensation of $300 to New Yorkers to avoid capital flight risk. It said the payment “does not constitute APY or interest.”